Jul 6 2009
ECOtality, Inc. (OTCBB: ETLY), a leader in clean electric transportation and storage technologies, today announced it has signed a letter of intent to enter into a joint venture with Shenzhen Goch Investment, Ltd., that will provide $15 million to establish manufacturing and distribution operations for electric vehicle (EV) charging systems in China. To support the Company’s anticipated expansion, ECOtality today received a combined $2.5 million direct investment.
“Shenzhen Goch Investment is a strong strategic partner that provides the knowledge and financial resources for ECOtality to successfully enter into the largest potential market for EVs and their supporting infrastructure – China,” stated Jonathan Read, president and CEO, ECOtality. “As we prepare for the commercial launch of grid-connected vehicles, the direct investment and joint venture with Shenzhen Goch Investment allows us to strengthen and expand our U.S. operations by internationally extending the reach of our technology leadership.”
According to the recent industry report by Pike Research, “Electric Vehicles on the Grid,” by 2015 the global market for electric vehicle charging equipment is expected to become a $1.9 billion annual industry, in which China is expected to be the world leader in charging station installations with 47.8% of annual sales. ECOtality has worked on every North American electric vehicle initiative since the 1990s and has exclusive rights to the patented Minit-Charger technologies that can fast-charge an EV in 10-15 minutes.
“As electric vehicles are one of the most viable solutions for China’s energy and environmental concerns, we are working with multiple local governments and strategic partners in China to establish a robust charging network that will foster the public adoption of electric vehicles,” said Dr. Dongsheng Gong, Founder and Chairman, Shenzhen Goch Investment. “With ECOtality’s advanced fast-charging technology and industry-leading experience in electric vehicle infrastructure, this partnership will provide cost-effective charging systems that will enable clean electric transportation in China and globally expand the accessibility of electric vehicle technologies.”
In exchange for exclusive sale and distribution rights for ECOtality’s charging stations in China, Shenzhen Goch Investment has agreed to invest $10 million into a manufacturing joint venture and $5 million into a sales and distribution joint venture with ECOtality. Of the $2.5 million in capital raised to support ECOtality’s domestic and international expansion, Shenzhen Goch Investment invested $2.0 million and current ECOtality institutional shareholders invested an additional $500,000. Ardour Capital Investments, LLC, acted as an advisor on this transaction.